Forbes: Kings value surpasses $1 billion, ranks 15th among NBA franchises

Forbes released its annual list of the NBA’s most valuable teams Wednesday morning with the Kings valued above $1 billion for the first time.

The Kings are worth $1.075 billion, according to the publication, a 16 percent increase over last year and more than twice what a group led by principal owner Vivek Ranadive paid for the team less than four years ago. Ranadive’s group bought the Kings for $534 million in May 2013.

The Kings, ranked 15th on this year’s list, are part of a leaguewide trend. Forbes valued the average NBA franchise at $1.36 billion, with 18 teams worth more than $1 billion. Five years ago, the Lakers were Forbes’ most valuable team at $900 million.

Forbes attributed the upsurge to the NBA’s lucrative media deals with ESPN and TNT, a seven-year collective-bargaining agreement reached in December and increased opportunities for the league in international markets.

For the Kings, their value was boosted by the October opening of Golden 1 Center, built for $557 million and billed as one of the most technologically advanced facilities in sports.

Forbes also reported the Kings’ operating profit at $18.4 million, compared with a league average of $31 million per team, which it deemed a record high.

Valued at $300 million just five years ago, the Kings have risen along with the rest of the NBA despite a lack of on-court success. The Kings have not posted a winning record since the 2005-06 season and since then have lost 65 percent of their games (301-559).

Value, though, does not necessarily come from winning. Forbes’ most valuable teams this year are the New York Knicks ($3.3 billion) and the Los Angeles Lakers ($3 billion). The Knicks last made the playoffs in 2013 and are mired in controversy between their management and both current and ex-players. The Lakers are headed for their fourth consecutive losing season.

The Golden State Warriors, who have appeared in two consecutive NBA Finals, rose to third in the Forbes rankings at $2.6 billion, marking an NBA-high 37 percent increase in value over last year.

The Kings entered Wednesday’s road game against the Warriors on a four-game winning streak and 1 1/2 games behind Denver for eighth place in the Western Conference.

This story was originally published February 15, 2017 at 2:54 PM.